Agenda item

            The Committee considered the undernoted report:

 

“1    Relevant Background Information

 

1.1Members’ will be aware that Annual Funding for Culture and Arts aims to assist professionally managed, Belfast-based, arts and heritage organisations deliver annual programmes for the benefit of the city.  Multi-annual Funding was established to provide a number of Belfast’s flagship arts organisations with longer-term security to enable them to deliver activities that substantially benefit the city.

 

1.2In 2010–11 Belfast City Council’s Tourism, Culture and Arts Unit invested just over £1.4m in arts, heritage and culture organisations, helping support our vision of Belfast as a prosperous and vibrant cultural city, engaging everyone that lives in, works in and visit the city.

 

1.3This investment has helped to support an audience of 5.8m; 100,000 participants in culture and arts projects; 263 full?time jobs; 102 part-time jobs; 1,396 freelance contracts; and 777 volunteering opportunities. It accounts for approximately 11.4 per cent of the organisations’ collective turnover, with a direct return on investment of 1:9.

 

1.4This report provides the Development Committee with recommendations on Multi-Annual Funding and Annual Funding for the 2011–12 financial year.  

 

1.5Multi-Annual Funding for Culture and Arts

 

      At the Development Committee meeting of 14 November 2007, Members’ agreed the selection of 14 Multi-Annual Funding clients. These clients entered into a three-year funding agreement at a minimum value of £30,000 per year. On 11 February 2009 the Development Committee agreed the selection of two additional Multi-Annual Funding clients.  These clients entered in to a two-year funding agreement at a minimum value of £30,000 per year.

 

      At the Development Committee of 15 September 2010, Members’ agreed that the current funding agreement for the existing Multi-Annual Funding clients be extended for an additional year until 31 March 2012. As in previous years, the continuation of funding was subject to receipt of a satisfactory monitoring report for 2010–11 and a one?year plan, including programme and budget, for 2011–12.

 

1.6Annual Funding for Culture and Arts

 

      The Annual Funding criteria for decision making (included in the guidance notes and application form, Appendix 1) were approved by Members’ at the Development (Arts) Sub?Committee in September 2004. The criteria were devised in order to assist Council to work in partnership with arts and heritage organisations in achieving its objectives.  They reflect the themes of the Development Department and the Integrated Cultural Strategy.

 

1.7Principles of the Reporting Process

 

      Officers undertake a lengthy assessment of all applications, scoring them against each of the criteria identified for the scheme. FGS McClure Watters was engaged to undertake a detailed assessment of each applicant’s management and governance.

 

      A summary of scores and recommendations are included at Appendix 3. A detailed assessment of each application is included at Appendix 4. These assessments:

 

-   highlight the main strengths and weaknesses in the application under each criterion;

-   ensure optimum transparency as to how decisions on applications have been reached; and

-   familiarise Members’ with the nature and variety of arts and heritage programmes in which the Council invests.

 

      Assessments were made on the basis of information supplied by the applicant. This includes the application form, programme of activities and supporting documentation such as business plans and strategies. It should be noted that where there is limited information supplied to address a specific criterion, this is highlighted as a weakness.

 

      As agreed previously by the Development (Arts) Sub?Committee, officers have not returned to applicants to request any additional details in relation to their applications.  This includes clarification of budgets or submission of additional supporting materials, such as up?to-date accounts.

 

      For ease of reference, grant histories for each applicant to Annual Funding has been included at Appendix 5.

 

1.8Rolling Programme

 

      At the Development Committee of Wednesday 9 April 2008, Members’ agreed to delegate authority to the Director of Development to award grants under the Rolling Programme to support innovation in arts and heritage. An amount of £29,290 is included in the 2011–12 budget estimates. Grants awarded range from £250 to £3,000.

 

      The purpose of the Rolling Programme is to assist arts or heritage organisations to avail of opportunities that arise during the year, including those that present themselves after the closing date of Annual or Multi-annual Funding applications.

 

1.9Community Festivals Fund

 

      Belfast City Council accepted the commission from the Department of Culture, Arts and Leisure (DCAL) to administer the Community Festivals Fund in the Belfast area. 

 

      The fund is 50 per cent funded through DCAL and 50 per cent through Council revenue. At the Development Committee in August 2008, Members’ agreed to delegate the authority to award grants under this fund to the Director of Development.

 

      The Community Festivals Fund invites applications from organisations which are planning community festivals to take place between 1 April and 30 June covering activities such as exhibitions, family days, historical talks and concerts. Grants range from a minimum of £2,500 to a maximum amount of £10,000.

 

2    Key Issues

 

2.1Due to current budget constraints, no increase has been included in the overall budget estimates for either the Multi?Annual Funding and Annual Funding programmes.

 

2.2Multi-Annual Funding

 

      The closing date for receipt of a one-year plan from existing Multi-Annual clients was 26 November 2010.

 

      The total level of funding recommended for sixteen Multi?annual Funding clients is £697,264.  Details of individual awards are provided in Appendix 2. While Multi?Annual clients have received an annual increase of up to 3 per cent previously, due to current budget constraints, all Multi?Annual clients are recommended to receive standstill funding.

 

      In 2011–12, Multi-Annual Funding clients will provide an extensive programme of activities in Belfast. This will be seen by a projected audience of over 3.3 million and approximately 164,000 participants will take part the collective programme. 

 

      Multi-Annual Funding will help to support 204 full-time jobs; 31 part-time; 456 freelancers; and 388 volunteer posts.

 

      Belfast City Council funding represents 6.7 per cent of the collective turnover for Multi-Annual Funding clients.  This equates to a direct return for investment of 1:15.

 

2.3Annual Funding

 

      By the closing date of 12 noon on 19 November 2010, a total of 54 applications to Annual Funding were received (60 were received for 2009–10). This includes applications from 10 organisations who did not apply in 2009–10. An additional two organisations who were funded in 2009–10 did not re?apply. Requests for grants this year far outstripped the available budget of £301,835. The applications requested total of £722,206 or 239 per cent of the available budget.

 

      With a few exceptions, the quality of application was high and Annual Funding applicants have put considerable effort into demonstrating how they meet the criteria.

 

      A total of 37 organisations have been recommended for Annual Funding totalling £301,835.

 

      Annual Funding organisations recommended for funding will provide an extensive programme of activities in Belfast. This will be seen by a projected audience of 1.4 million and approximately 70,000 participants will take part the collective programme. 

 

      Annual Funding will help to support 83 full-time jobs; 64 part-time; 505 freelancers; and 190 volunteer posts.

 

      Belfast City Council funding represents 3.9 per cent of the collective turnover for Annual Funding clients.  This equates to a direct return for investment of 1:25. 

 

2.4Rationale for Level of Recommendation 

 

      The threshold for funding is 60 per cent and over. All applicants who scored between 60 and 64.9 per cent have been recommended standstill funding (at the same level as awarded last year) or the amount requested, whichever is greater. This includes three organisations previously not awarded funding who are recommended to receive one third of the amount requested or £3,000, the minimum level of funding, whichever is greater. 

 

      Applicants who scored between 65 and 69.9 per cent are recommended to receive a £500 increase on last year or the amount they requested, whichever is less.

 

      All applicants who scored 70 per cent or over got a £1,000 increase on last year or the amount they requested, whichever is less. £218 was left in the budget, which was awarded to ArtsEkta as the highest scoring applicant.

 

      While the overall budget for Annual Funding remains the same as 2010-11, an increase for top-scoring applicants is recommended due to two previously funded organisations not reapplying.

 

      Members’ specific attention is requested in relation to the recommendation for Culture Night.  In 2009 and 2010 they received £25,000 per year through Development and for future activity were encouraged to apply through existing BCC funding schemes.  Their application scored 63.6 and it is recommended that CN is awarded £10,000, 33 per cent of their request.  Members should note that given the scale of this reduced funding recommendation, it is unlikely that Culture Night could deliver programming in areas other than the City Centre

 

      On average, applicants recommended for funding will receive 59.4 per cent of their request, which amounts to an average of 4 per cent of turnover.

 

      In general, officers noted weaknesses in applications in relation to applicants’ staff development and effective monitoring and evaluation. This will be further addressed in the development of the new Integrated Cultural Strategy. The sustainability of the organisation and its activity was assessed under the Economic Regeneration criteria. However, Members’ should note that all organisations are vulnerable to public sector cuts in the current economic climate. Offers of funding will be made subject to the submission of a budget reflecting the actual level of award, viable and satisfactory revised programme and evidence of funding from the Arts Council of Northern Ireland and other key funders, as applicable.

 

      Where accounts submitted for 2009–10 show a surplus, we will also seek assurances from the board that this sum will be reinvested into the company as reserves.

 

2.5Rolling Programme

 

      Applications to the 2011–12 Rolling Programme scheme are due to open in mid-February 2011.

 

      There is likely to be considerable pressure on the Rolling Programme budget to help support projects and organisations affected by Arts Council and other funding cuts. It is therefore recommended that Members’ agree to limit the number of awards made through Rolling Programme to one award per organisation. 

      This will also encourage organisations to prioritise applications that are both innovative and strategically important. No funding will be approved prior to ratification of the 2011–12 budget estimates.

 

2.6Community Festivals Fund

 

      On 6 January 2011, DCAL notified Council that they are prepared to make an additional £3,175 available to Community Festivals Fund 2010–11. As the funding rounds for this year have closed and there is no further mechanism to distribute funding to festival organisations, it is recommended that this additional funding is put towards internal staff costs for administering Community Festivals Fund.

 

      DCAL’s contribution to the Community Festivals Fund 2011?12 is subject to the outcome of the central government budget consultation. Confirmation of their subvention is expected by mid-March 2011. £79,000 is included in the Departments budget estimates for 2011–12.

 

      It is recommended that Community Festivals Fund re-opens on 2 March 2011 to allow organisations to apply for funding for festivals running from 1 April 2011. No funding will be approved prior to confirmation of an offer from DCAL and ratification of the 2011–12 budget estimates.

 

3    Resource Implications

 

3.2Financial

 

      Funding is included in the Tourism, Culture and Arts Unit’s draft budget estimates for 2011–2012.

 

      Human Resources

 

      This will be covered within the work programme of the Tourism, Culture and Arts Unit.

 

      Assets and Other Implications

 

      None.

 

4    Equality and Good Relations Considerations

 

4.1None.

 

5    Recommendations

 

5.1It is recommended that Members’ note the contents of this report and:

 

1.      Approve the recommendations for Multi-Annual Funding as set out in Appendix 2

2.      Approve recommendations for Annual Funding as set out in Appendix 3

3.      Approve the number of awards made under Rolling Programme to one per organisation

4.      Accept DCAL’s offer of an additional £3,175 towards the administration of Community Festival Fund 2010–11

5.      Agree to open applications to Community Festivals Fund 2011–12.

 

6    Decision Tracking

 

      Timeframe:          March 2010

      Reporting Officer: Kerrie Sweeney

 

7    Key to Abbreviations

 

      DCAL: Department of Culture Arts and Leisure

 

8    Documents Attached

 

      Appendix 2: Recommendations for Multi-annual Funding

      Appendix 3: Scores and Recommendations for Annual Funding”

 

            After discussion, the Committee adopted the recommendations to award the funding as set out below:

 

“Appendix 2

 

Recommendations for Multi-annual Funding

 

Organisation	2010–11 Award	Recommendation
Beat Initiative	£34,330	£34,330
Belfast Community Circus	£34,330	£34,330
Belfast Exposed	£31,209	£31,209
Belfast Festival at Queen’s	£68,920	£68,920
Cathedral Quarter Arts Festival	£30,300	£30,300
Cinemagic	£31,209	£31,209
Crescent Arts Centre	£34,330	£34,330

 

Organisation	2010–11 Award	Recommendation
Féile an Phobail	£30,300	£30,300
Grand Opera House	£34,330	£34,330
Linen Hall Library	£42,912	£42,912
Lyric Theatre	£37,971	£37,971
New Belfast Community Arts Initiative	£34,070	£34,070
Northern Visions	£31,209	£31,209
OldMuseum Arts Centre	£41,352	£41,352
Ulster Orchestra	£149,283	£149,283
Young at Art	£31,209	£31,209

 

Appendix 3

 

Scores and Recommendations for Annual Funding